A Fistful of Inflation
Wednesday was quite a day for earnings in the food-and-beverage sector. there were a couple of surprises in the mix, but a common theme ran throughout them all. Try and figure out what that is.
The biggest surprise by far was Green Mountain Coffee Brewers (GMCR), whose shares were recently up some 20% after a blowout quarter. Fiscal first-quarter revenue rose 102% to $1.16 billion, 9% above the consensus estimate of $1.06 Billion, while earnings of $0.60 per share trounced the $0.36 estimate. Sales of K-Cups jumped 115%, and brewer-and-accessory saw a 76% jump. Gross margins rose 405 basis points to just over 29%, but this was due primarily to price increases, a common theme in many of Wednesday's food-and-beverage earnings releases....448 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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